Britons on holiday in eurozone tipped to take a pounding as parity approaches

British holidaymakers should brace themselves for more Brexit pain when they change their pounds into euros, with Morgan Stanley forecasting the currencies are on the way to parity.

The pound is currently trading at 1.09 euro after collapsing from 1.31 euro the day before Britain voted to quit the European Union in June.

This has meant Brits holidaying in the likes of sunny Spain and Italy have had their spending power obliterated, which has resulted in more people than usual opting for "staycations" in Britain, despite it being afflicted with poor summer weather.

Now the US investment banking giant believes the dilapidated British currency has further to fall and is pencilling in pound-euro parity in the first quarter of 2018, when £1.02 will buy just one euro.

It would signal the first time in its 18-year history the euro has reached parity with sterling.

Piling on the misery, Morgan Stanley described Britain's economic prospects as "bleak" as it heads for what appears to be a calamitous exit from the EU, with Tory ministers unable to provide clarity on their vision for life outside the bloc.

Michael Gove, Boris Johnson, Philip Hammond, Liam Fox, Chris Grayling and Prime Minister Theresa May herself have given contradictory statements about Conservative plans for trade, customs, tariffs, immigration, air control, a transition period and countless other facets of Britain's divorce.